"This proves investors confidence in the market is back"??!
Biggest 2 Day Surge In History Saved As Epic 3pm 'VIXtermination' Ramp Undoes "Quant Omen" Tumble
27
August, 2015
Market 'rebound' pic.twitter.com/ve8pIHyfwH
— Pedro da Costa (@pdacosta) August 25, 2015
But
then, with 30 mins to go....
While stocks
is "wot reelly mattahs"... today's
move in crude oil was simply epic...biggest
single day surge since March 12th 2009 - this is a 6 sigma move based
on the vol of the last 6 years (the equivalent of passing a man in
the street who is 6'11" all)
The
Dow just went from its biggest 2-day point loss to the biggest 2-day
point gain... this
is not going to normalize quickly...and sure enough once JPMorgan
unleashed their reality omen, and
Plosser pointed the finger at GDP and a 'decent' economy, everything
fell...only to be rescued in the last 30 mins by a VIXtermination
Quite
a week... well over 7500 Points in the The Dow...
While
the volatility comparisons are all tothe 2008/9 period, we noted
another more accurate comparison... This surge looks like the August
2007 period when Geithner leaked the news of a 50bp discount rate
cut and
enabled the last hoorah for banks to unwind over-extended longs into
retail greater fools...
And
there is no volume in this bounce at all...
VIX
remains in backwardation... but plunged today at the
front-end...beforee ripping back higher after JPM/Plosser
After
its biggest 2-day rise ever, today's retracement was of similar
extreme size to other events over the last 10 years...before it broke
higher
*
* *
The
day was very wild...
Starting
with stocks, we contonued to ramp after China unleashed exuberant
plunge protection into their close... a 5.3% bounce into the close!
And
US equities kept running all day as business media cheerleaded
mom-and-pop " did you miss your chance to buy low?" -
until JPMorgan
unleashed some facts and
Fed's Plosser peed in the party punch... and then VIX was punched
lower in a panic-buying last 30 mins...
So
US Stocks LIFTED 2.3% in last 30 mins... in context China LIFTED its
stock market 5% - so Ken Henry must do better.
Just
look at the noise in VIX in the last 30 mins...
Thanks
to the biggest
2-day short squeeze in 4 years...
The
equity exuberance was not experienced in credit land...
Today's
rip was driven by energy stocks which in turn were driven by total
idicoy as above in Crude...
Because
how manhy times has buying the dip in Energy stocks completely and
utterly failed...
Thinking
out loud on levels...
On
the week, everything was awesome to start... but then the Quant Omen
hit... but then again - there is always panic-selling driven by VIX
collapse...
But
we thought it notable that Small Caps and Nasdaq rolled over after
touchingthe opening gap down levels fromlast Friday's tumble...
The
Nasdaq managed to get green year-to-date, but everything else remains
red...
Treasury
yields rallied as stocks fell in the afternoon - closing around unch
on the day...
The
US Dollar strengthened once again on the day but faded post EU Close
with USDJPY dropping after JPM dropped its reality bomb...
Commodities
were where the real action was today...
With
crude the standout craziness...
But
copper and Silver also surged...
But
But But... the clever chap on CNBC yesterday said "this proves
investors confidence in the market is back"??
Charts:
Bloomberg
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